kiwisaver worth a punt?

[p2r]

ASB Growth is index NZ & Australian but with property and international shares as well. The super fund (not kiwisaver) I have with them is quite low fees but not many switches allowed between funds.

Do index funds pay less tax than managed funds?

[p2r]

Thanks 777 for the confirmation. Based on the recommendation on this forum, I think I'll pick SuperLife for their low fees. (I never like funds, so a no-frill, low-fee service will suit me well.)

The only thing no frills about Superlife is they don't seem to spend much on marketing and they are non profit. Their service is light years ahead of say ASB if you can log in on the internet you can see your funds daily changes and switch as you like, choose exactly your own pick of funds and their web site is looking more modern now.

[stoploss]

Milford Asset Management Growth/aggressive fund just keeps on giving the goods.

The Fund had a 18% return for the year ended 31st of august.

Am I happy with my fund choice.

Yes

AA

Thanks for this , yes 5 years into the scheme long overdue to review my choice of manager. The Gareth Morgan Kiwisaver (Growth fund) tells me basically for every dollar in- that I have a dollar ( this includes govt subsidy,tax credit and employer input ) Apparently the benchmark is - 23 % and I have a simple return of - 8 %. I should have done something about this years ago...I think the only real winner here is maybe Gareth Morgan with the $ 50 Mio odd he pocketed from the sale of the Kiwisaver scheme ......!!!!!

[jpware]

Initially I allocated my Kiwisaver funds to Fisher Funds which is overseen by Carmel Fisher; she well respected amongst her industry peers. I remained with them for roughly a year and a half and they did quite well, at one point up 38 ish % around mid-2011. When Fisher Funds purchased Huljich I decided it was time for me to go. My preference is for a smaller boutique like Investment Company with smaller FUM. Fisher Funds had grown its FUM to an astonishing amount which the purchase of Huljich. I was quite curious to see how they would unwind (if at all) the current Huljich investments and whether they would be required to sell any of their investments at a loss. At this point, I did some research and came to the conclusion that I would place my Kiwisaver funds with Milford Asset Management. Again, Brian Gaynor is a very well respected individual amongst his peers with a highly skilled team behind him (quite a few are CFA holders). Fees are ok; 1.05% management fee; $36 per annum admin fee; and performance high watermark fee of 15% if they achieve their target benchmark of 10%. So far Milford has managed to do quite well for me and I love their Investment methodology. They’ve won quite a few awards too.

[p2r]

Are there just 2 options with Milford?

[jpware]

Are there just 2 options with Milford?

At this point yes. However, based on their investment statement they are introducing a conservative fund from the 1st October 2012.

[p2r]

It is nice to be able to switch to a cash fund in times of crisis...

[777]

It is nice to be able to switch to a cash fund in times of crisis...

The biggest challenge is deciding when. It is usually too late when you do and then the same when you need to return to a more aggressive stance. Personally, unless you are intending to cash it up in the short term, I would ride out the lows.

[p2r]

Well I reckon if you have made 25% in the last year in the Superlife NZ Shares might be time to switch to more cash & bonds. Although NZ share market might still go OK I don't think it can repeat the effort in the coming year. Or time to try the Gaynor conservative fund - is it open? ASB master trust is doing a good job too in it's passive way, I see it can now get longer term investments in it's cash fund, so that should improve things.
I wonder what effect going to 3% next year in March will have on KS. Probably more money looking for a home in the NZ share market? Has the NZ Share, property and bond market ever had a teat like this to suck on before...?

[CJ]

I wonder what effect going to 3% next year in March will have on KS. Probably more money looking for a home in the NZ share market? Has the NZ Share, property and bond market ever had a teat like this to suck on before...?

I have often wondered that. Is there a 'kiwisaver' effect of the NZX now. More so in July (or is it August??) when the govn gives everyone their $500 odd dollars. That must create a huge amount of buying pressure.

2m in kiwisaver but assume only 50% qualify for full govt top up. Assume 15% goes into NZX
1m x $500 x 15% = $75m

Plus probably 40% going into bonds and fixed interest (lots in default funds ) so $200m.

Sure that is probably only the daily turn over on the NZX but that is on top of the regular funds flowing in every pay day!